The federal government will save £5bn by reducing the variety of folks eligible for some advantages, Liz Kendall has introduced.
Talking within the Commons, the work and pensions secretary stated the variety of new folks claiming private independence cost (PIP) is “not sustainable”.
She stated the federal government won’t freeze PIP – as experiences had beforehand recommended – however as a substitute make it tougher to qualify for the day by day dwelling allowance from November 2026.
Private Independence Fee (PIP) is cash for individuals who have further care wants or mobility wants on account of a incapacity.
Individuals who declare it are awarded factors relying on their capacity to do sure actions, like washing and getting ready meals, and this influences how a lot they are going to obtain.
Ms Kendall stated that from November 2026, folks might want to rating a minimal of 4 factors in a minimum of one exercise to qualify for the day by day dwelling factor of PIP. At the moment, the usual price is given if folks rating between eight and 11 factors total, whereas the improved price applies from 12 factors.
The adjustments won’t have an effect on the mobility part, Ms Kendall stated.
The cupboard minister additionally introduced a evaluation of the PiP evaluation, which she stated will likely be achieved “in close consultation with disabled people, the organisations that represent them and other experts”.
The announcement comes as Chancellor Rachel Reeves struggles to steadiness the books because of a poor economic system and geopolitical occasions.
The price of long-term illness and incapacity advantages for working-age folks has risen by £20bn because the pandemic and is forecast to hit £70bn over the subsequent 5 years – a determine ministers say is unsustainable.
Labour says there’s additionally a “moral case” for change, as individuals are written off too shortly as a substitute of being supported again into work, with one in eight younger folks at the moment not in training, employment or coaching.
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